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Special Meeting on Jan 27, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Jan 27, 2009 1:00PM

                PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, JANUARY 27, 2009                          P. 2 
               4.     SPECIAL ORDER OF BUSINESS 
           None. 
               5.     UNANIMOUS CONSENT CALENDAR 
            (00:01:18) Commissioner Bryant noted that the commission would like to have
            discussion regarding Item 5a; the item was removed from the consent calendar for
            discussion and vote which would follow the vote on remaining consent calendar items. 
              b.     Request for Motion Authorizing the Sale of Port Personal Property by the
            Chief Executive Officer 
           Request document: Commission agenda memorandum dated January 20, 2009 from
            Craig Watson, General Counsel 
                c.     Request for Authorization for Commission International Travel for 2009 
           Request document: Commission agenda memorandum dated January 23, 2009 from
           Mary Gin Kennedy, Director of Commission Services 
           Motion for approval of Unanimous Consent Items 5b and 5c  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
            The agenda was returned to Item 5a for a separate vote, as follows: 
               a.  (00:02:04) Request for authorization for the Chief Executive Officer execute a
             Relocation Agreement and other documents providing for the final
             reimbursement of the moving and re-establishment expenses incurred by the
              relocation of Inspiration Media, Inc. dba Salem Communications, located within
              the Terminal 18 expansion area on Harbor Island for $1,741,687.95 
           Request document: Commission agenda memorandum dated January 20, 2009 from
            Mike Burke, Senior Manager, Container Leasing and Operations 
             Presenters: Mr. Burke and Isabel Safora, Deputy General Counsel 
            Mr. Burke provided to the Commission a background of the request, noting that the
            project goes back to the mid 1990's, when there was a 90-acre expansion of, and
            improvements to Terminal 18. He also noted that since this request is a result of an act of
            condemnation, the Port is obligated to provide reimbursement funds. 
            Motion for approval of Item 5a  Davis 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
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            Motion carried by the following vote: 
            In Favor  Bryant, Creighton, Davis, Hara, Tarleton (5) 
            (00:10:20) Prior to scheduled agenda items, Commissioner Bryant announced that all
            Commissioners have signed the Port Commissioners' Code of Conduct for the year 2009,
             as required annually. Copies of the documents are on file in Port offices. 
           Commissioner Bryant also announced that Commissioners Hara and Creighton would
            serve as member of the Port Audit Committee for the year of 2009, and thanked
            Commissioner Tarleton for her work on the Committee over the previous year. 
           CEO Yoshitani then commented on the recommendations made as a result of the McKay
            Investigation, noting that work has begun on all recommendations and that the staff has
            created a matrix, showing the progress made on all recommendations. He noted that the
             matrix will be posted on the Port's website, both internally and externally. 
             Mr. Yoshitani stated that in regard to a review of Port ethics and fraud awareness
             policies, the firm of Davis, Wright, Tremaine has been retained in order to assist with the
             endeavor. He also noted that all Port staff had been asked by him to read all existing Port
            Policies, namely Employee Ethics Policy; Consultant Ethics Policy; Fraud Awareness
            Policy; Whistleblower Protection Policy; Anti-harassment Policy; and ICT (Information
           and Communication Technology) Appropriate Use Policy by March 31, 2009. 
               6.     POLICY AND STAFF BRIEFINGS 
               a.  (00:15:37) Update on the Consolidate d Rental Car Facility Program 
            Presentation document: Commission agenda memorandum dated January 20, 2009 and
            attachment from Michael Ehl, Director, Airport Operations and George England,
           Program Leader, Project Management Group 
             Presenters: Mr. England; Ralph Graves, Managing Director, Capital Development
            Division; Jim Schone, Director, Aviation Business Development and Management;
            Elizabeth Morrison, Senior Manager, Corporate Finance. Dick Schober, Seattle
             Northwest Securities also participated in the presentation. 
             Staff provided an update on the financing situation and construction activities for the
             Rental Car Facility. 
            Mr. Schone commented that the Rental Car companies had all been apprised of the
            information that was being presented in today's briefing to the Commission. 
            Mr. Schober provided an update on the current credit market situation. 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, JANUARY 27, 2009                          P. 4 
             Ms. Morrison spoke about the three fronts staff is currently working on, including
            pursuing bank loans, proceeding with a bonds issue for second quarter, and continuing to
             work with potential partners. 
            Commissioner Bryant commented that he understood today's presentation was only a
             briefing, but stressed that before any action is taken on the Rental Car Facility Project,
             staff return with another briefing. 
            Mr. England reported on the construction side of the project, updating the Commission
            on the reduction and reassignment of workers, on the project schedule, and on the project
             budget.. 
            Commissioner Hara stated that it would be helpful to see information on dollar amounts
            already expended, including the $20 million the Commission had previously authorized. 
            Commissioner Bryant stressed that he wants staff to remain within the current level of
             authorized expenditure and also to consider opening the facility later than 2011. 
              b.  (00:45:21) Terminal 30 and Terminal 91 Financial and Schedule Sta tus 
            Presentation document: Commission agenda memorandum dated January 12, 2008, 
            attachment and table from Michael Burke, Director, Container Operations and Dakota
            Chamberlain, Director, Seaport Project Management 
             Presenter: Mr. Chamberlain 
            Mr. Chamberlain provided a status update on the Terminal 30 (T30) and Terminal 91
             (T91) projects, noting that the cruise facility building at T91 was approximately 90%
            complete and that the container terminal at T30 was approximately 70% complete. 
            Marine Item 7a was advanced on the agenda as follows: 
               7.     MARINE ITEMS 
               a.  (00:53:45) Resolution No. 3210, Second Reading and Final Passage. Naming the
              new cruise terminal located on Pier 91 'Smith Cove Cruise Terminal.' 
           Request document: Commission agenda memorandum dated January 21, 2009 from
            Charlie Sheldon, Managing Director, Seaport Division 
             Presenters: Mr. Sheldon and Mike McLaughlin, Senior Manager, Cruise and Industrial
             Properties 
           Motion for Second Reading and Final Passage of Resolution No. 3210  Creighton 
            Motion carried by the following vote: 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
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           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
            The agenda was returned to Policy and Staff Briefings as follows: 
               6.     POLICY AND STAFF BRIEFINGS 
                c.     (00:56:02) Briefing on Alaskan Way Viaduct/Seawall Replacement Project 
            Presentation documents: Commission agenda memorandum dated January 21, 2009 and
            computer slide presentation from Kurt Beckett, Director, External Affairs and Geri Poor,
            Regional Transportation Manager 
             Presenters: Ms. Poor and Mike Merritt, Government Relations Manager 
            Staff provided a program description of the bored tunnel hybrid project as developed by
            Washington State Department of Transportation. Ms. Poor commented that the Port is
             now beginning to engage as a partner with the City, the State, and the County to
            implement that program. 
             Ms. Poor noted that the bored tunnel option would address the Port's priorities regarding
            capacity and connection. 
            Topics reviewed by staff included: 
              Funding strategy 
              Next steps 
                  o  Legislative approval for funding 
                  o  Coordinate project implementation 
                  o  Environment review 
                  o  Engineering and soils exploration 
                  o  Meet with community groups and businesses to finalize design 
              Program timeline 
              Tunnel timeline 
               Port project needs 
             Key Port components 
               Next steps for Port of Seattle 
            Commissioner Tarleton stated her concern that she had only seen projections for growth
             in the area through 2015, and that it would be better to see projections though 2030 or
            2040. 
            Public Comment regarding Item 6c was received from the following: 
               Bob Donegan, Seattle Historic Waterfront Coalition, who thanked the Port for
                  their participation in the Viaduct Replacement Project 

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             Tom Tanner, Magnolia Community Club. Mr. Tanner read into the record a letter
                 to the Port Commission dater January 22, 2009 from Randall Thomsen, President
               of Magnolia Community Club. A copy of the letter is by reference, made a part
                  of these minutes, is marked Exhibit 'A,' and is on file in Port offices. 
               Gene Hoglund, who voiced concern that the bored tunnel option as proposed
                 needed to provide better access to communities in the north 
               John Blackman, Argosy, who spoke in support of the bored tunnel option. A
                 copy of a letter dated January 7, 2009 from Mr. Blackman to Gov. Gregoire
                  regarding the tunnel was provided, is by reference made a part of these minutes, is
                  marked Exhibit 'B,' and is on file in Port offices. 
               A letter dated January 27, 2009 from Dave Gering, Executive Director,
                 Manufacturing Industrial Council of Seattle to Commissioner Bryant was
                  received, is by reference, made a part of these minutes, is marked Exhibit 'C,' and
                    is on file in Port offices. 
            Commission Davis reiterated the importance of considering capacity, environmental
            issues, and jobs, and emphasized the need for a public process regarding the Viaduct
            replacement. 
            Commissioner Tarleton stressed that the solution needs to accommodate growth in the
             region. 
               8.     AVIATION ITEMS 
            Request for authorization to execute a professional services agreement to perform
             technical review on behalf of the airlines and airport related to capital projects. The total
            estimated cost during the coming four years is $1,600,000. Item 8a was withdrawn from
            the agenda as an action item, and a briefing was provided under New Business. 
             11.    GENERAL BUSINESS 
           None. 
               9.     CAPITAL DEVELOPMENT 
           None. 
             10.    REAL ESTATE 
           None. 
             12.    NEW BUSINESS 
               a.     (01:49:20) Dave Soike, Deputy Director, Aviation Division provided a brief
            background review of Aviation agenda Item 8a, which was withdrawn from the agenda,
             noting that the item would come forward for approval at a meeting in the near future. 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
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              b.     (01:53:41) Mr. Soike also provided a brief review on an item which would be
             coming forward for approval in the near future, that being a request for authorization for
            relocation of residents in the Town and Country Mobile Home Park. 
             13.    ADJOURNMENT 
            There being no further business, the meeting was adjourned at 3:26 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 













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